Arthur Hayes' Privacy Warning to Zcash Investors

Recently, Zcash (ZEC) has been exhibiting significant price fluctuations, prompting a warning from Arthur Hayes, the founder of BitMEX. Hayes urged investors to withdraw their ZEC assets from exchange accounts and store them privately.

In particular, ZEC plummeted to 653 dollars, but then quickly rose to 723 dollars over the following weekend. However, in the days that followed, after this rise, it fell back down to 504 dollars and closed the day again at 677 dollars. These tumultuous price movements indicate that ZEC has lost %37 of its value in just three days.

Hayes shared a striking message on social media regarding Zcash's shield feature: “If you’re holding ZEC assets on an exchange, pull them into your own wallet and shield them.” This recommendation stands out as an important step in preserving Zcash's privacy-focused structure.

Zcash offers a unique structure that supports both transparent (t-address) and private (z-address) transactions. However, centralized exchanges typically only allow transactions to transparent addresses, making them traceable. This situation raises criticisms that ZECs held on exchanges lose their privacy feature.

Hayes emphasized that keeping their assets in private wallets not only protects privacy but also provides a safeguard against regulatory risks and potential exchange bankruptcies. The current market capitalization of Zcash hovers around 7.4 billion dollars and has shown a weekly increase of about %5.

Among other privacy-focused projects, Monero (XMR) continues to rise with a valuation of 7 billion dollars. However, other projects such as Dash (DASH), Decred (DCR), and ZKsync (ZK) have observed value losses between %13 and %42 over the past seven days. Hayes' statements suggest that interest in privacy coins may be renewed and that investors are beginning to adopt the "own your keys" philosophy.